SEC Rules Evolve: Risk Mitigation for Investment Advisors

On October 21, 2024, the Division of Examinations of the U.S. Securities and Exchange Commission (“SEC”) released its examination priorities for fiscal year 2025 (which started October 1, 2024). Over the course of 2025, the Division intends for its examinations to focus on the use of artificial intelligence (“AI”) and other emerging technologies (including digital engagement practices (“DEPs”)), complex products, cybersecurity, outsourcing, private fund advisers, and compliance with new and amended SEC rules for Investment Advisors.

Investment Advisor Professional Liability is one of the most common professional liability coverages that is placed in the Financial Institutions insurance market. However, as technology changes and regulators shift focus to areas of deficiency, in a changing technological landscape, it becomes valuable to understand all angles of the evolving dynamic.

This webinar will discuss how current insurance products can offer a safety net in areas that are being targeted by the SEC for both defense costs and client lawsuits resulting from regulatory actions. We will explore the potential professional liability exposure and regulatory cost exposure associated with an insured’s failure to meet stronger SEC standards and areas of underwriting focus that will assist insureds to be more aware of the issues involved. Attendees will better understand the changing regulatory scrutiny, evolving underwriting methodology, and potential insurance coverages to address exposure and “holes” in coverage